Top six utility stocks to explore in July

Summary

  • Southern Company (SO) has a dividend yield of 4.28%. The stock gave a 19% return in one year.
  • UGI Corporation (UGI) increased by 54% in one year as of July 8, 2021.
  • MDU Resources (MDU)March quarter 2021 net income grew 107% YoY. Its stock soared 50% in one year.

The utility sector includes suppliers of electricity, water, natural gas, wastewater management, etc. These are essential services; hence, the performance of the utility stocks is often tied to the country's economic health. Also, they generally pay regular dividends.

Although these are large-sized companies and grow steadily, they still pose investment risks. Hence, any investment decision should be taken after careful evaluation of the companies.

Here are six utility stocks to explore.

Duke Energy Corporation (NYSE: DUK) is one of the largest utility companies in the US, with interests in electric, infrastructure, gas, and renewables.

DUK’s market capitalization is US$ 76.99 billion and a P/E ratio of 57.52. Its current dividend yield is 3.85%, with an annualized dividend of US$ 3.86. 

For March quarter, 2021, it reported total revenue of US$ 6.15 billion, a 3% growth YOY, and net income attributable to common shareholders of US$ 953 million with nearly 6% growth YOY. Its earnings per share diluted were US$ 1.25 compared to US$ 1.24 a year ago. 

Its stock garnered a 26% return in one year at the closing on July 8, 2021, at US$ 100.56.

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Source: Pixabay


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UGI Corporation (NYSE: UGI) is a holding company, and through its subsidiaries, it stores, distributes, transports, and markets energy products and services. It has four segments, AmeriGas Propane, UGI International, Midstream & Marketing and UGI Utilities.

UGI has a market capitalization of US$ 9.63 billion and a P/E ratio of 10.93. With a current dividend yield of 2.96%, its annualized dividend is US$ 1.38. 

Its revenue for the March quarter of 2021 was US$ 2.58 billion, and net income attributable to UGI Corporation was US$ 489 million or US$ 2.33 per diluted share, showing a 16% increase in revenue and 116% in net income, YOY. 

UGI stock increased 54% in one year. The share closed at US$ 45.99 on July 8, 2021.

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American Water Works Company, Inc. (NYSE: AWK) is the largest investor-owned, geographically diverse water and wastewater utility company in the United States.

The company’s market capitalization is US$ 29.24 billion and a P/E ratio of 40.69. Its dividend yield is 1.48%, and its annualized dividend is US$ 2.41.

Its revenue for the March quarter of 2021 was US$ 888 million, and net income was US$ 133 million, a 5% and 7% increase in revenue and net income attributable to common shareholders, respectively. AWK’s earnings per share diluted were US$ 0.73 compared to US$ 0.68 in the corresponding quarter of 2020.

The stock price increased from US$ 130.69 on July 9, 2020, to US$ 161.58 on July 8, 2021, giving a nearly 24% return in one year.

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Southern Company (NYSE: SO) is a holding company. It generates revenue from electricity, natural gas, and other complementary products and services.

It has a market capitalization of US$ 64.86 billion and a P/E ratio of 19.15. SO has been paying a dividend and has a current yield of 4.28% with an annualized dividend of US$ 2.64.

The company’s revenue for the March quarter of 2021 was US$ 5.9 billion, and consolidated net income attributable to the southern company of US$ 1.14 million, an increase of 18% in revenue and 31% in net income YoY, respectively. Its EPS diluted was US$ 1.06 compared to US$ 0.81 in the previous year March quarter.

The stock price went up nearly 19% in one year at the closing price of US$ 61.55 on July 8, 2021.

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Source: Pixabay

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Entergy Corporation (NYSE: ETR) is a power generation company. Entergy operates through two segments, Utility and Entergy Wholesale Commodities.

Its market capitalization is US$ 20.54 billion and a P/E ratio of 12.85. The company dividend yield is 3.7%, and the annualized dividend is US$ 3.80.

Its revenue for the quarter ended March 31, 2021, was US$ 2.8 billion and net income of US$ 334.57 million, a rise of 17% in revenue and 182% in net income year-over-year. ETR’s earnings per share diluted were US$ 1.66 compared to US$ 0.59 in the previous year March quarter.

Its stock showed a growth of 6% in one year at the closing price of US$ 102.27 on July 8, 2021.

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MDU Resources Group, Inc. (Holding Company) (NYSE: MDU) is a regulated energy delivery, construction material and services business. It operates in five segments: electric and communication lines, gas pipelines, natural gas distribution, construction materials and contracting, and construction services. Its market capitalization is US$ 6.25 and a P/E ratio of 14.93. Its dividend yield is 2.71%, and its annualized dividend is US$ 0.85.

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For the March quarter of 2021, its revenue was US$ 1.23 billion and a net income of US$ 52 million, showing a growth of nearly 3% in revenue and 107% in net income YOY. Its earnings per share diluted increased from US$ 0.13 in the March quarter of 2020 to US$ 0.26 in the March quarter of 2021.

Its stock gave a return of 50% in one year at the close of July 8, 2021, at US$ 30.85.

Please note: The above constitutes a preliminary view and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.

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